September 15th, 2016 | Andrew Hagger | News

With the academic year now underway, analysis by Rplan.co.uk, the online investment platform, shows that new parents should be looking to invest  up to £260.55 per month to cover the cost of sending a baby to university for a three-year course in 18 years’ time.

rplan.co.uk estimates that the amount needed in 2034 will be £74,307.08, assuming current fees of £9,000 and annual living expenses of £8,000 adjusted for 2% annual inflation.

The analysis also shows the importance saving early – reaching the £57,441.79 needed in five years’ time would require much higher contributions of up to £888.29 per month.

By comparison, the average easy access ISA rate at present is just 1.11% while the best easy access savings account pays 1.55% a year. Using these rates, parents would have to save £310.96 and £298.58 a month respectively to reach the £74,307.08 target by 2034.

The calculations assume an annualised return of 3% a year after charges. A medium risk portfolio is designed to produce investment returns to beat inflation over the medium to longer term, ie greater than five years. A higher risk portfolio would offer the potential to achieve a higher rate of return and therefore less contributions but savers would have to be comfortable with more volatility.

A spokesman for rplan, said: “The cost of studying at university has increased dramatically over the last few years and many parents or grandparents want to help contribute. Parents and grandparents that are prepared to invest at an early stage can typically take more risk. However, even with an 18-year time horizon parents may not feel comfortable with a high-risk approach to investing for their children’s education. Investments typically offer the potential for better returns than cash, though, even when a medium or lower risk approach is selected.

“Saving monthly helps to diversify risk over time – it also allows investors to take advantage of downturns in the market by providing the opportunity to buy investments at cheaper valuations over the long term, known as pound-cost averaging.  Our analysis also shows how allowing as much time as possible for investments to grow is key: shortening the time to invest can have a major impact on just how much needs to be saved each month.”

September 15th, 2016 | Andrew Hagger | News

The AA has extended the 0% period for balance transfers on its Dual Credit Card to 26 months from 20 months.

This change makes the Dual Credit Card the most competitive of its kind, offering interest free periods of over two years on both purchases and balance transfers.

Michael Johnson, Director of Financial Services at the AA said: “By bringing the balance transfer term in line with the purchases free period, the Dual Credit Card is now a truly matched proposition.

“The Dual Card gives cardholders the best of both worlds, providing a great incentive for day-to-day purchasing whilst leaving the customer open to making balance transfers as well.”

September 7th, 2016 | Andrew Hagger | News

Thousands of students have now received their A-level results and for many it signals the start of university, which can be an expensive few years! But, while there are hefty debts involved, students can save the pennies elsewhere. Flubit’s Savings Champion, Carla Rio Alves shares her tips for snapping up the best deals, without damaging the bank balance

1. Get a student card

One of the perks to being a student is that you’re eligible for discounts in most online retailers and high-street shops. You can snap up even more discounts with an NUS Extra card. Although it costs £12 a year, you’ll soon make your money back with the 150 offers and discounts available.

2.Get discounts when buying the essentials online

Leaving home for the first time will mean you’ll need a heap of essentials from household goods to entertainment – the list is never ending. On top of this you’ll need the uni must haves including books and stationary. Don’t get caught out by paying over the odds, instead snap up bargains by shopping online through websites like Flubit.com – where you could save up to 15% on the original price you found at Amazon.

3. Attend Freshers Fairs

Make sure you check out the uni Freshers fair. Not only will you meet new people, but you can also pick up freebies, money saving tips and local discount vouchers too. At some fairs, retailers attend to attract students, so that often means even more offers and perks!

4. Check out student websites

There are many websites created solely for students. Student Money Saver, Save the Student and Student Beans are great hubs where you can find useful information on anything and everything student related from the latest offers and discounts to help with budgeting and finances.

5. Purchase a Railcard

At some point, like any student, you’ll want to go home and see your family – but doing so can be expensive. Make sure you invest in 16-25 Railcard, it’s designed for young people and gives you a third off of rail journeys across the UK. Although costing £30 a year, you’ll soon make your money back. The card also gives you access to offers and competitions, including West-End theatre discounts and holiday offers.

6. Don’t get caught out on bills

If you’ve never lived away from home before managing household bills can be daunting. Make sure you keep track of when bills are due to avoid incurring penalty changes from late payments. Also worth checking out comparison sites to make sure you’re not paying over the odds on your energy and electric bills. The money you save can be used on more exciting things!

7. Set yourself a budget

It may not sound exciting but it’s essential to set yourself a budget. You don’t want to be left at home whilst your friends are out having a good time just because you didn’t save enough money. Make sure you calculate both your incomings and outgoings. Once you know how much money you have left, you can spend it as you wish.

8. Join the gym, but without the hefty costs

Gym memberships can be expensive, so make sure to check out student deals or even better the university gym. Most gyms in university towns across the country will offer special student rates. Some will even offer a month by month contract rather than signing up for the entire year. It’s also worth checking to see whether your university has a gym that you could join – these tend to be much cheaper.

9. Find the best student current account

Now you’re at university, you’ll need to have a current account. Before making a decision, make sure you look around and open the account that meets your needs. Most banks have competitive deals, so don’t be afraid to ask what you can get. NatWest is currently offering students a National Express coach card, which gives you 1/3 off coach travel for 4 years. Santander is also offering a free 4-year 16-25 Railcard and an interest-free and fee-free arranged overdraft with its 1|2|3 Student Current Account.

10. Take lunch with you

While most universities will have a canteen and bars on site, buying food everyday will really eat into your budget. Make lunch and take it to class, you certainly won’t be the only person doing so.

September 5th, 2016 | Andrew Hagger | News

Research from Swedish savings and loans provider, Ikano Bank shows motorists who don’t shop around for the best loan deals when buying a new car add an average of £520 to the cost of their purchase – the equivalent of over 500 litres of petrol or almost six months’ worth of petrol.

The introduction of the new “66” number plates in September is expected to spur on a rush of new vehicle purchases. In March this year, when the latest registration plates were released, sales of new cars spiked by 5.3%**, making it the biggest increase since the bi-annual plate change began in 1999, according to the Society of Motor Manufacturers and Traders (SMMT).

But research from Ikano Bank, which has its UK headquarters in Nottingham, reveals that motorists are losing out by not shopping around for the best deal before choosing how to finance their new car:

• Just over a fifth (22%) chose the cheapest finance option available
• More than a quarter (27%) choose the easiest option instead
• A third (32%) research how to pay for a new set of wheels in less than 15 minutes
• This compares to a third (31%) who spent between a week and a month researching which car to buy and a fifth (19%) who spent between one and six months
• Younger people are much more likely to spend more time researching how to finance their new car, with 83% of those aged 18-34 spending more than 15 minutes, compared to 52% of those aged over 65
• This means motorists are adding on average £520 to the cost of their car, by not shopping around for the best finance deal.

A spokesman from Ikano Bank said: “We’re a nation of car lovers, and vehicle sales have previously risen considerably following the introduction of new number plates.

“But sadly, we’re not as smart about it as we should be. Despite spending months researching new cars, we’re much more impulsive when it comes to budgeting.

“People often opt to take finance directly from their car dealer and don’t realise that very often, this isn’t the best option available. Securing finance for a car can be completely separate from the purchase of the car itself.”

Ikano Bank’s own internal data shows that customers take out a loan to buy a car more than any other purpose and the products offered by the bank provide a headline rate of 3.2% APR Representative (on loans from £7,500 – £15,000).

September 5th, 2016 | Andrew Hagger | News

Over the last 18 months there have been many examples of credit card rewards or cashback deals being scrapped or watered down following the revised interchange rules – a move which has decimated a profitable income stream for credit card companies.

However despite the doom and gloom there is evidence that the credit card rewards scheme is far from being dead and buried.

Only last month Asda Money announced details of its new Cashback Plus card and today we’ve seen the launch of the new intu card powered by MBNA.

The intu card is collaboration between MBNA and intu, with the latter running some of the biggest shopping centres in the UK, including Lakeside, The Trafford Centre, Metro Centre and Eldon Square.

Andrew Hagger Personal Finance Expert from Moneycomms, looks at the latest deal

So is it a good deal?

“Although it’s an intu branded card, you earn the same amount of rewards wherever you use it, it’s not one of those cards where you earn an enhanced level of points in store.”

“If you spend £250 on the card in the first 90 days you’ll earn a £20 intu gift card and if you reach £3,000 of spend in year one you’ll get a further £20 gift card and if you spend £5,000 or more a further £20 gift card – so a possible £60 reward on £5,000 of spend which equates to a return of 1.2% which is pretty decent in today’s market.”

The card also comes with 12 months interest free on purchases and the representative APR for purchases is 16.9% some 2-3% lower than the majority of mainstream UK credit cards.

Unlike the new Asda Money card there is no annual fee to pay, plus when you visit intu centres you are entitled to exclusive cardholder discounts in restaurants and other benefits such as free buggy hire.

For the first 12 months cardholders also receive free membership of the Gourmet society worth approximately £70.

From year 2 onwards the earn rate is less generous with a £10 gift card at £3,000 spend and a further £10 gift card if you hit £5,000 spend – an equivalent reward rate of 0.4%

In terms of rewards cards it’s an excellent deal particularly in year one, and although the year 2 rewards are less appealing, the ability to earn the same level of rewards wherever you shop plus qualify for specific benefits in the intu shopping centres should make it a big hit with shoppers.

Hagger adds one word of warning – “as ever don’t sign up for any rewards or cashback based credit card if you’re not confident that you’ll clear your credit card statement balance in full every month – otherwise your interest charges will wipe out any benefit earned.”

ENDS

August 31st, 2016 | Andrew Hagger | News

Home insurance price rises have slowed with increased competition limiting annual price rises to just 1.6% taking average costs to £119, new analysis from insurance market research experts Consumer Intelligence shows.

Consumer Intelligence’s analysis – which is used by the Government’s Office of National Statistics to calculate official inflation statistics – shows premiums were virtually unchanged in the past three months.

Its quarterly Home Insurance Index shows prices were still nearly 10% lower in July compared with February 2014 despite concerns the Insurance Premium Tax increase in November last year would send costs soaring.

Instead relatively low claims for storm and flood damage and increased competition for business has kept prices flat.

Homeowners aged 50 and over have seen average increases of 2.1% in the year to July taking best-buy premiums to £111 while the under-50s have seen annual increases of 1% taking average costs to £126.

However prices in the past three months have fallen on average by 0.2% and are unchanged since December 2015.

Consumer Intelligence’s research monitors the five most competitive home policies across price comparison websites and direct insurers highlighting the need for homeowners to review their premium at their next renewal.

August 31st, 2016 | Andrew Hagger | News

One in three people would unwittingly transfer money to an unknown account if they were telephoned by someone posing as their bank according to new research from Nationwide Building Society. This is despite more than two thirds (67%) of people worrying about becoming a victim of fraud.

The poll was conducted as part of the Society’s ongoing campaign to help people protect themselves from the growing threat of fraud. Despite criminals employing increasingly more sophisticated techniques to dupe their victims, there are a number of simple precautions and steps people can take to avoid becoming another statistic.

The research of 2,000 UK adults, shows that around a third of Brits (31%) could potentially become victims of vishing by stating that they would transfer their money to another account if they were called by someone purporting to be from a trusted organisation, such as their bank, building society or the police. Criminals often use this tactic, requesting their unsuspecting victims to transfer money into a ‘safe’ account due to suspected fraud.

Despite the terms and conditions of current accounts telling people not to share their PIN with anyone, half (50%) have disclosed their PIN to their partner. However, around one in 15 would share their PIN with their bank or building society (7%) or the police (6%). While no legitimate bank or building society employee or police officer would ask for this information, fraudsters often pretend to be from these organisations as a way of coercing the information out of their victims.

The poll also reveals that while older people may be seen as an easy target, younger generations are twice as likely to be caught out in a scam. More than half (52%) of those aged 18 to 24 would transfer their money to another account if they were convinced that either the police, their bank or their building society was asking them to do so, compared to just one in five (22%) aged 55 and over.

Equally, a fifth (20%) of 18 to 24 year-olds would share their PIN with their bank or building society and one in six (16%) would share the same information with the police. By comparison, just one in fifteen (6%) and less than one in 20 (4%) of those aged 55 and over would be willing to share the same information.

August 31st, 2016 | Andrew Hagger | News

Generous grandparents are making it possible for the whole family to go away together as one in seven over 50s have been on holiday with their children and grandchildren and a third have paid for the whole trip, according to Saga Travel Insurance.

Intergenerational holidays are popular with the whole family. Not only do children have their choice of people to play with but parents have a built-in babysitter as grandparents are keen to spend time with their grandchildren. This could be why one in ten over 50s say they are planning a holiday with children and grandchildren for next year.

Analysis of data shows the most common countries for family getaways are Spain, USA and France.

However, paying for the whole family to go abroad is not cheap as intergenerational holidays costs around £4,000 on average.

Even if parents can’t make the trip grandparents and grandchildren aren’t missing out on some holiday fun. One in six grandparents say they have taken their grandchildren overseas without their parents in the last five years and a further one in ten are planning to do so in the next year.

Saga understands that its customers may want to go on holiday with younger family members. This is why its travel insurance customers can add anyone under 50 years old, including children, on their policy. Furthermore, the whole family doesn’t have to travel together to be insured.

A Spokesman for Saga, commented: “It’s great to see so many families going away and spending quality time together. A lot of over 50s are making this happen by being so generous and paying for the trip.

“Going on holiday with the whole family is great for everyone. Not only can parents recharge their batteries and enjoy some adult time together as their parents are on hand to babysit, but grandparents can create precious memories playing games by the pool with grandchildren. The real winners of these holidays though are the kids as they get to spend time with all their favourite adults.”

August 24th, 2016 | Andrew Hagger | News

Halifax has increased its balance transfer credit card offers giving 0% interest for up to 25 months with no fee, and 0% interest for up to 41 months with a 3.5% fee.

Both cards also offer 0% interest on purchases made during the first six months from account opening.

To qualify for these offers, customers must make a minimum balance transfer of £100 within the first 90 days of account opening. The offers are available exclusively online.

Andrew Hagger, Personal Finance Expert said – “41 months is currently the joint longest 0% balance transfer deal available, but a 40 month card from Tesco Bank, MBNA or Sainsbury’s Bank will cost you far less in terms of the one off balance transfer fee, so longest isn’t necessarily always the best.”

A spokesman for Halifax, said: “Our latest balance transfer offers rank amongst the best offers in the market today, making the cards a great choice for those looking to use a credit card to bring their credit arrangements into one place.”

Customers can check their eligibility for a Halifax credit card using the online eligibility checker. After a few simple questions are answered, the checker will indicate to interested customers how likely they are to be accepted for the product without impacting their credit rating.

August 24th, 2016 | Andrew Hagger | News

With the new 66 registration cars out on 1st September plenty of people will be looking for a new set of wheels, but whether you’re buying brand new or second hand it’s worth shopping around to check out the cheapest finance options.

Andrew Hagger, Personal Finance Expert from Moneycomms said: “Consumers spend many hours seeking out the car they want including the perfect colour, specification and mileage so why not be equally choosy when it comes to sorting the finance for their vehicle?”

Until recently consumers have tended to take out a personal loan from their bank, however Money Transfer credit cards have become more mainstream and are a flexible low cost alternative that can save you hundreds of pounds.

Three of the biggest card providers Virgin Money, MBNA and Tesco Bank offer money transfer cards at 0% interest for at least three years – and enable you to transfer funds from your card limit to your current account.

There is a one off money transfer fee to pay (2.39% to 3.94%) but as you will see from the tables below that despite this, these cards are still way cheaper than even the best buy personal loan deals.

Hagger added: “We’re not talking just a few pounds difference, the potential savings run in to hundreds of pounds and could help cover the cost of your car insurance, road tax or a good few tanks of fuel.”

For example on a £7,500 sum a Virgin Credit Card Money Transfer will save you £503.55 in interest when compared with a loan from Metro Bank at 5.9% APR.

On a smaller loan the savings are more significant – for example an MBNA Money Transfer works out £956 cheaper than a £5,000 loan over 3 years from TSB at 13.9% APR.

If you go down the money transfer route – ensure you make your repayments on time each month otherwise you’ll lose your 0% promotional rate, but providing you do this it’s an easy way to get an even better deal on your new car.